Aye Finance, a microlending platform has raised Rs 210 crore in its Series E funding round led by its existing investor CapitalG, Google’s VC firm under its parent entity Alphabet Inc. The round also participation from LGT Lightstone, Falcon Edge, A91 Partners and Denmark-based asset management company MAJ Invest.
The regulatory filings have reflected that the company has allotted 34,09,800 Series E preference shares for Rs 615.87 per share. Share prices have increased by 44.3% as compared to the Series D funding round. Post this development, the company is expected to reach a valuation of Rs 1910 crore which is a 62% growth from its last funding round.
Aye Finance provides customer-centered financial services to micro and small businesses. The firm presently operates over 100 branches in 11 states across India which majorly serves segments such as manufacturing, trading, and service group, among others.
Once the deal is finalized, SAIF Partners will remain the biggest shareholder controlling 20.03% stake in the Gurugram based company, closely followed by LGT Capital who will hold 17.49%. Google’s CapitalG will control 16.42% while Falcon Edge will now hold a 13.87% stake. Co-founders Sanjay Sharma and Vikram Jetley stakes worth $24 million and $5.72 million respectively. Sharma (along with his wife Namrata) will hold a 9.4% stake while Jetley will command 2.24%. The Aye Employee Welfare Trust also holds a 1.8% stake in the company valued nearly $4.6 million.
The firm has declared that it will infuse the new funds in disbursing loans to small and medium sized finances requiring working capital urgently due to ongoing covid crisis. Aye Finances had raised Rs 107 crore debt capital from Switzerland-based BlueOrchard in December 2019. They also bagged $20 million from A91 Partners through a secondary sale of shares.